Wil36679 Appa a1 a26 Fin Info Stat

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This appendix includes financial information for (1) Best Buy and (2) RadioShack. This in-

formation is taken from their annual 10-K reports filed with the SEC. An annual report is a

summary of a company’s financial results for the year along with its current financial condi-

tion and future plans. This report is directed to external users of financial information, but it

also affects the actions and decisions of internal users.

A company uses an annual report to showcase itself and its products. Many annual reports in-

clude attractive photos, diagrams, and illustrations related to the company. The primary objective

of annual reports, however, is the financial section, which communicates much information about

a company, with most data drawn from the accounting information system. The layout of an an-

nual report’s financial section is fairly established and typically includes the following:

Letter to Shareholders

Financial History and Highlights

Management Discussion and Analysis

Management’s Report on Financial Statements and on Internal Controls

Report of Independent Accountants (Auditor’s Report) and on Internal Controls

Financial Statements

Notes to Financial Statements

List of Directors and Officers

This appendix provides the financial statements for Best Buy (plus selected notes) and

RadioShack. The appendix is organized as follows:

Best Buy A-2 through A-20 RadioShack A-21 through A-26

Many assignments at the end of each chapter refer to information in this appendix. We en-

courage readers to spend time with these assignments; they are especially useful in showing

the relevance and diversity of financial accounting and reporting.

AAppendix

Financial StatementInformation

Special note: The SEC maintains the EDGAR (Electronic Data Gathering, Analysis, and Retrieval) data-base at www.SEC.gov.The Form 10-K is the annual report form for most companies. It provides

electronically accessible information.The Form 10-KSB is the annual report form filed by “small busi-

nesses.” It requires slightly less information than the Form 10-K. One of these forms must be filed within

90 days after the company’s fiscal year-end. (Forms 10-K405, 10-KT, 10-KT405, and 10-KSB405 are slight

variations of the usual form due to certain regulations or rules.)



Financial Report

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A-4 Appendix A Financial Statement Information

Consolidated Balance Sheets

$ in millions, except per share amounts

March 1, March 3,2008 2007

Assets

Current AssetsCash and cash equivalents $ 1,438 $ 1,205

Short-term investments 64 2,588

Receivables 549 548

Merchandise inventories 4,708 4,028

Other current assets 583 712

Total current assets 7,342 9,081Property and Equipment

Land and buildings 732 705

Leasehold improvements 1,752 1,540

Fixtures and equipment 3,057 2,627

Property under capital lease 67 32

5,608 4,904

Less accumulated depreciation 2,302 1,966

Net property and equipment 3,306 2,938

Goodwill 1,088 919

Tradenames 97 81

Equity and Other Investments 605 338

Other Assets 320 213

Total Assets $12,758 $13,570

Liabilities and Shareholders’ Equity

Current Liabilities

Accounts payable $ 4,297 $ 3,934

Unredeemed gift card liabilities 531 496 Accrued compensation and related expenses 373 332

Accrued liabilities 975 990

Accrued income taxes 404 489

Short-term debt 156 41

Current portion of long-term debt 33 19

Total current liabilities 6,769 6,301

Long-Term Liabilities 838 443

Long-Term Debt 627 590

Minority Interests 40 35Shareholders’ Equity

Preferred stock, $1.00 par value: Authorized — 400,000 shares;Issued and outstanding — none — —

Common stock, $.10 par value: Authorized — 1.0 billion shares; Issued andoutstanding — 410,578,000 and 480,655,000 shares, respectively 41 48

Additional paid-in capital 8 430

Retained earnings 3,933 5,507

Accumulated other comprehensive income 502 216

Total shareholders’ equity 4,484 6,201Total Liabilities and Shareholders’ Equity $12,758 $13,570

See Notes to Consolidated Financial Statements.



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Appendix A Financial Statement Information A-5

Consolidated Statements of Earnings$ in millions, except per share amounts

March 1, March 3, February 25,For the Fiscal Years Ended 2008 2007 2006

Revenue $40,023 $35,934 $30,848

Cost of goods sold 30,477 27,165 23,122

Gross profit 9,546 8,769 7,726

Selling, general and administrative expenses 7,385 6,770 6,082

Operating income 2,161 1,999 1,644

Other income (expense)

Investment income and other 129 162 107

Interest expense (62) (31) (30)

Earnings before income tax expense, minority interest

and equity in loss of affiliates 2,228 2,130 1,721

Income tax expense 815 752 581

Minority interest in earnings (3) (1) —

Equity in loss of affiliates (3) — —

Net earnings $ 1,407 $ 1,377 $ 1,140

Earnings per shareBasic $ 3.20 $ 2.86 $ 2.33

Diluted $ 3.12 $ 2.79 $ 2.27

Weighted-average common shares outstanding (in millions)

Basic 439.9 482.1 490.3

Diluted 452.9 496.2 504.8




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Consolidated Statements of Cash Flows$ in millions

March 1, March 3, February 25,For the Fiscal Years Ended 2008 2007 2006

Operating ActivitiesNet earnings $1,407 $1,377 $1,140 Adjustments to reconcile net earnings to total cash provided by

operating activities:Depreciation 580 509 456Stock-based compensation 105 121 132Deferred income taxes 74 82 (151)

Excess tax benefits from stock-based compensation (24) (50) (55)Other, net (3) 21 1

Changes in operating assets and liabilities, net of acquired assets

and liabilities:Receivables 12 (70) (43)Merchandise inventories (562) (550) (457)Other assets 42 (47) (11) Accounts payable 221 320 385Other liabilities 74 185 165

Income taxes 99 (136) 178Total cash provided by operating activities 2,025 1,762 1,740

Investing Activities

Additions to property and equipment, net of $80, and $75 non-cashcapital expenditures in fiscal 2008 and 2006, respectively (797) (733) (648)

Purchases of investments (8,501) (4,789) (4,561)Sales of investments 10,935 5,095 4,362 Acquisitions of businesses, net of cash acquired (89) (421) —Change in restricted assets (85) 63 47

Other, net 1 5 46Total cash provided by (used in) investing activities 1,464 (780) (754)

Financing Activities

Repurchase of common stock (3,461) (599) (772)Issuance of common stock under employee stock purchase plan and

for the exercise of stock options 146 217 292Dividends paid (204) (174) (151)Repayments of debt (4,353) (84) (69)

Proceeds from issuance of debt 4,486 96 36Excess tax benefits from stock-based compensation 24 50 55Other, net (16) (19) (10)Total cash used in financing activities (3,378) (513) (619)

Effect of Exchange Rate Changes on Cash 122 (12) 27Increase in Cash and Cash Equivalents 233 457 394Cash and Cash Equivalents at Beginning of Year 1,205 748 354Cash and Cash Equivalents at End of Year $1,438 $1,205 $ 748

Supplemental Disclosure of Cash Flow Information

Income taxes paid $ 644 $ 804 $ 547Interest paid 49 14 16




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Consolidated Statements of Changes in Shareholders’ Equity $ and shares in millions

Accumulated Additional Other

Common Common Paid-In Retained ComprehensiveShares Stock Capital Earnings Income Total

Balances at February 26, 2005 493 $49 $936 $3,315 $149 $4,449Net earnings — — — 1,140 — 1,140Other comprehensive income, net of tax:

Foreign currency translation adjustments — — — — 101 101Unrealized gains on available-for-sale investments — — — — 11 11

Total comprehensive income 1,252Stock options exercised 9 1 256 — — 257Tax benefit from stock options exercised

and employee stock purchase plan — — 55 — — 55Issuance of common stock under

employee stock purchase plan 1 — 35 — — 35Stock-based compensation — — 132 — — 132Common stock dividends, $0.31 per share — — — (151) — (151)Repurchase of common stock (18) (1) (771) — — (772)

Balances at February 25, 2006 485 49 643 4,304 261 5,257Net earnings — — — 1,377 — 1,377Other comprehensive loss, net of tax:

Foreign currency translation adjustments — — — — (33) (33)Unrealized losses on available-for-sale investments — — — — (12) (12)

Total comprehensive income 1,332Stock options exercised 7 1 167 — — 168Tax benefit from stock options exercised and

employee stock purchase plan — — 47 — — 47Issuance of common stock under employee stock

purchase plan 1 — 49 — — 49Stock-based compensation — — 121 — — 121Common stock dividends, $0.36 per share — — — (174) — (174)Repurchase of common stock (12) (2) (597) — — (599)Balances at March 3, 2007 481 48 430 5,507 216 6,201Net earnings — — — 1,407 — 1,407Other comprehensive income (loss), net of tax:

Foreign currency translation adjustments — — — — 311 311Unrealized losses on available-for-sale investments — — — — (25) (25)

Total comprehensive income 1,693Cumulative effect of adopting a new accounting

standard (Note 8) — — — (13) — (13)Stock options exercised 4 — 93 — — 93Tax benefit from stock options exercised and

employee stock purchase plan — — 17 — — 17Issuance of common stock under employee

stock purchase plan 1 — 53 — — 53Stock-based compensation — — 105 — — 105Common stock dividends, $0.46 per share — — — (204) — (204)

Repurchase of common stock (75) (7) (690) (2,764) — (3,461)Balances at March 1, 2008 411 $41 $ 8 $3,933 $502 $4,484


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1. Summary of Significant Accounting Policies

Description of Business

Best Buy is a specialty retailer of consumer electronics,

home office products, entertainment software, appliances

and related services, with fiscal 2008 revenue of

$40.0 billion.

We operate two reportable segments: Domestic and

International. The Domestic segment is comprised of all

states, districts and territories of the U.S. and includes

store, call center and online operations of Best Buy, Best

Buy Mobile, Geek Squad, Magnolia Audio Video, Pacific

Sales Kitchen and Bath Centers (“Pacific Sales”) and

Speakeasy (“Speakeasy”).

The International segment is comprised of all Canada

store, call center and online operations, including Best Buy,

Future Shop and Geek Squad; all China store, call center

and online operations, including Best Buy, Geek Squad

and Jiangsu Five Star Appliance Co. (“Five Star”). The

International segment offers products and services similar

to those offered by our Domestic segment. However,

Canada Best Buy stores do not carry appliances. Further,

our China Best Buy store and Five Star stores do not carry

entertainment software. At the end of fiscal 2008, the

International segment operated 131 Future Shop stores

and 51 Best Buy stores in Canada, and 160 Five Star

stores and one Best Buy store in China.

In support of our retail store operations, we also main-

tain Web sites for each of our brands (BestBuy.com,

BestBuy.ca, BestBuy.com.cn, BestBuyMobile.com, Five-Star.cn, FutureShop.ca, GeekSquad.com, GeekSquad.ca,

MagnoliaAV.com, PacificSales.com, and Speakeasy.net).

Use of Estimates in the Preparation ofFinancial Statements

The preparation of financial statements in conformity with

accounting principles generally accepted in the United

States (“GAAP”) requires us to make estimates and

assumptions. These estimates and assumptions affect the

reported amounts in the consolidated balance sheets and

statements of earnings, as well as the disclosure of

contingent liabilities. Future results could be materially

affected if actual results were to differ from these

estimates and assumptions.

Fiscal Year

Our fiscal year ends on the Saturday nearest the end of

February. Fiscal 2008 and 2006 each included 52 weeks,

and fiscal 2007 included 53 weeks.

Cash and Cash Equivalents

Cash primarily consists of cash on hand and bank

deposits. Cash equivalents primarily consist of money

market accounts and other highly liquid investments withan original maturity of three months or less when

purchased. The amounts of cash equivalents at March 1,

2008, and March 3, 2007, were $871 and $695,

respectively, and the weighted-average interest rates were

4.1% and 4.8%, respectively.

Outstanding checks in excess of funds on deposit (book

overdrafts) totaled $159 and $183 at March 1, 2008,

and March 3, 2007, respectively, and are reflected ascurrent liabilities in our consolidated balance sheets.

Merchandise Inventories

Merchandise inventories are recorded at the lower of cost,

using either the average cost or first-in, first-out method,

or market. Inbound freight-related costs from our vendors

are included as part of the net cost of merchandise

inventories. Also included in the cost of inventory are

certain vendor allowances that are not a reimbursement

of specific, incremental and identifiable costs to promote a

vendor’s products. Other costs associated with acquiring,

storing and transporting merchandise inventories to our

retail stores are expensed as incurred and included in

cost of goods sold.

Our inventory loss reserve represents anticipated physical

inventory losses (e.g., theft) that have occurred since the

last physical inventory date. Independent physical inventory

Notes to Consolidated Financial Statements

$ in millions, except per share amounts or as otherwise noted



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counts are taken on a regular basis to ensure that theinventory reported in our consolidated financial statements

is properly stated. During the interim period between

physical inventory counts, we reserve for anticipated

physical inventory losses on a location-by-location basis.

Our markdown reserve represents the excess of the

carrying value, typically average cost, over the amount

we expect to realize from the ultimate sale or other

disposal of the inventory. Markdowns establish a new cost

basis for our inventory. Subsequent changes in facts or

circumstances do not result in the reversal of previously

recorded markdowns or an increase in that newly

established cost basis.

Restricted Assets

Restricted cash and investments in debt securities totaled

$408 and $382, at March 1, 2008, and March 3, 2007,

respectively, and are included in other current assets or

equity and other investments in our consolidated balance

sheets. Such balances are pledged as collateral or

restricted to use for vendor payables, general liability

insurance, workers’ compensation insurance and warranty

programs.

Property and Equipment Property and equipment are recorded at cost. We

compute depreciation using the straight-line method over

the estimated useful lives of the assets. Leasehold

improvements are depreciated over the shorter of their

estimated useful lives or the period from the date the

assets are placed in service to the end of the initial lease

term. Leasehold improvements made significantly after

the initial lease term are depreciated over the shorter of their estimated useful lives or the remaining lease term,

including renewal periods, if reasonably assured.

Accelerated depreciation methods are generally used for

income tax purposes.

When property is fully depreciated, retired or otherwise

disposed of, the cost and accumulated depreciation are

removed from the accounts and any resulting gain or loss

is reflected in the consolidated statement of earnings.

Repairs and maintenance costs are charged directly toexpense as incurred. Major renewals or replacements

that substantially extend the useful life of an asset are

capitalized and depreciated.

Costs associated with the acquisition or development of

software for internal use are capitalized and amortized

over the expected useful life of the software, from three to

seven years. A subsequent addition, modification or

upgrade to internal-use software is capitalized only to the

extent that it enables the software to perform a task it

previously did not perform. Capitalized software is

included in fixtures and equipment. Software maintenance

and training costs are expensed in the period incurred.

Property under capital lease is comprised of buildings and

equipment used in our retail operations and corporate

support functions. The related depreciation for capital lease

assets is included in depreciation expense. The carrying

value of property under capital lease was $54 and $26 at

March 1, 2008, and March 3, 2007, respectively, net of

accumulated depreciation of $13 and $6, respectively.

During the fourth quarter of fiscal 2007, we removed from

our fixed asset balance $621 of fully depreciated assets

that were no longer in service. This asset adjustment was

based primarily on an analysis of our fixed asset recordsand certain other validation procedures and had no net

impact on our fiscal 2007 consolidated balance sheet,

statement of earnings or statement of cash flows.

Goodwill and Intangible Assets

Goodwill

Goodwill is the excess of the purchase price over the fair

value of identifiable net assets acquired in business

combinations accounted for under the purchase method.

We do not amortize goodwill but test it for impairment

annually, or when indications of potential impairment

exist, utilizing a fair value approach at the reporting unit

level. A reporting unit is the operating segment, or a

business unit one level below that operating segment,

for which discrete financial information is prepared

and regularly reviewed by segment management.




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Tradenames

We have indefinite-lived intangible assets related to

our Pacific Sales and Speakeasy tradenames which

are included in the Domestic segment. We also have

indefinite-lived intangible assets related to our Future

Shop and Five Star tradenames, which are included in the

International segment.

We determine fair values utilizing widely accepted valuation

techniques, including discounted cash flows and market

multiple analyses. During the fourth quarter of fiscal 2008,

we completed our annual impairment testing of our

goodwill and tradenames, using the valuation techniques as

described above, and determined there was no impairment.

Investments

Debt SecuritiesShort-term and long-term investments in debt securities are

comprised of auction-rate securities, variable-rate demand

notes, asset-backed securities, municipal debt securities

and commercial paper. In accordance with SFAS No. 115,

Accounting for Certain Investments in Debt and Equity

Securities, and based on our ability to market and sell

these instruments, we classify auction-rate securities and

other investments in debt securities as available-for-saleand carry them at fair value. Auction-rate securities are

intended to behave like short-term debt instruments

because their interest rates are reset periodically through

an auction process, typically at intervals of 7, 28 and

35 days. Investments in these securities can be sold for

cash at par value on the auction date if the auction is

successful. Substantially all of our auction-rate securities

are AAA/Aaa-rated and collateralized by student loans, which are guaranteed 95% to 100% by the U.S.

government. We also hold auction-rate securities that are

in the form of municipal revenue bonds, the vast majority

of which are AAA/Aaa-rated and insured by bond

insurers. We do not have any investments in securities that

are collateralized by assets that include mortgages or

subprime debt. Our intent with these investments is not to

hold these securities to maturity, but to use the periodic

auction feature to provide liquidity as needed. See Note 3,Investments, for further information.

In accordance with our investment policy, we place our

investments in debt securities with issuers who have high-

quality credit and limit the amount of investment exposure

to any one issuer. The primary objective of our investment

activities is to preserve principal and maintain a desired

level of liquidity to meet working capital needs. We seek

to preserve principal and minimize exposure to interest-

rate fluctuations by limiting default risk, market risk and

reinvestment risk.

Marketable Equity Securities

We also invest in marketable equity securities and classify

them as available-for-sale. Investments in marketable

equity securities are included in equity and other

investments in our consolidated balance sheets, and arereported at fair value based on quoted market prices. All

unrealized holding gains and losses are reflected net of

tax in accumulated other comprehensive income in

shareholders’ equity.

Other Investments

We also have investments that are accounted for on either

the cost method or the equity method that we include in

equity and other investments in our consolidated balancesheets.

We review the key characteristics of our debt, marketable

equity securities and other investments portfolio and their

classification in accordance with GAAP on an annual

basis, or when indications of potential impairment exist. If

a decline in the fair value of a security is deemed by

management to be other-than-temporary, we write down

the cost basis of the investment to fair value, and the

amount of the write-down is included in net earnings.

Income Taxes

We account for income taxes using the asset and liability

method. Under this method, deferred tax assets and

liabilities are recognized for the estimated future tax

consequences attributable to differences between the




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financial statement carrying amounts of existing assetsand liabilities and their respective tax bases, and

operating loss and tax credit carryforwards. Deferred tax

assets and liabilities are measured pursuant to tax laws

using rates we expect to apply to taxable income in the

years in which we expect those temporary differences to

be recovered or settled. We recognize the effect of a

change in income tax rates on deferred tax assets and

liabilities in our consolidated statement of earnings in theperiod that includes the enactment date. We record a

valuation allowance to reduce the carrying amounts of

deferred tax assets if it is more likely than not that such

assets will not be realized.

Long-Term Liabilities

The major components of long-term liabilities at March 1,

2008, and March 3, 2007, included long-term rent-relatedliabilities, unrecognized tax benefits recorded pursuant to

FIN No. 48, deferred compensation plan liabilities,

advances received under vendor alliance programs and

self-insurance reserves.

Revenue Recognition

We recognize revenue when the sales price is fixed or

determinable, collectibility is reasonably assured and thecustomer takes possession of the merchandise, or in the

case of services, at the time the service is provided.

Revenue is recognized for store sales when the customer

receives and pays for the merchandise at the point of

sale. For online sales, we estimate and defer revenue and

the related product costs for shipments that are in-transit

to the customer. Revenue is recognized at the time we

estimate the customer receives the product. Customerstypically receive goods within a few days of shipment.

Such amounts were immaterial at March 1, 2008, and

March 3, 2007. Amounts billed to customers for shipping

and handling are included in revenue.

Revenue is reported net of estimated sales returns andexcludes sales taxes. We estimate our sales returns

reserve based on historical return rates. Our sales returns

reserve was $101 and $104, at March 1, 2008, and

March 3, 2007, respectively.

Gift Cards

We sell gift cards to our customers in our retail stores,

through our Web sites, and through selected third parties. We do not charge administrative fees on unused gift

cards, and our gift cards do not have an expiration date.

We recognize revenue from gift cards when: (i) the gift

card is redeemed by the customer, or (ii) the likelihood of

the gift card being redeemed by the customer is remote

(“gift card breakage”), and we determine that we do not

have a legal obligation to remit the value of unredeemed

gift cards to the relevant jurisdictions. We determine ourgift card breakage rate based upon historical redemption

patterns. Based on our historical information, the

likelihood of a gift card remaining unredeemed can be

determined 24 months after the gift card is issued. At that

time, we recognize breakage income for those cards for

which the likelihood of redemption is deemed remote and

we do not have a legal obligation to remit the value of

such unredeemed gift cards to the relevant jurisdictions.Gift card breakage income is included in revenue in our

consolidated statements of earnings.

We began recognizing gift card breakage income during

the third quarter of fiscal 2006. Gift card breakage

income was as follows in fiscal 2008, 2007 and 2006:

2008 2007 2006

Gift card breakage income $34 $46 $43

Due to the resolution of certain legal matters associated with gift card liabilities, we recognized $19 and $27 of gift cardbreakage income in fiscal 2007 and 2006, respectively, that related to prior fiscal years.




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Advertising Costs

Advertising costs, which are included in SG&A, are

expensed the first time the advertisement runs. Advertising

costs consist primarily of print and television advertisementsas well as promotional events. Net advertising expenses

were $684, $692 and $644 in fiscal 2008, 2007 and

2006, respectively. Allowances received from vendors for

advertising of $156, $140 and $123, in fiscal 2008,

2007 and 2006, respectively, were classified as reductions

of advertising expenses.

Stock-Based Compensation

At the beginning of fiscal 2006, we early-adopted the

fair value recognition provisions of SFAS No. 123

(revised 2004), Share-Based Payment (123(R)), requiringus to recognize expense related to the fair value of our

stock-based compensation awards. We elected the

modified prospective transition method as permitted by

SFAS No. 123(R). Under this transition method, stock-

based compensation expense in fiscal 2008, 2007

and 2006 included: (i) compensation expense for all


Cost of Goods Sold and Selling, General and Administrative ExpensesThe following table illustrates the primary costs classified in each major expense category:

Cost of Goods Sold

• Total cost of products sold including:

— Freight expenses associated with moving

merchandise inventories from our vendors to our

distribution centers;

— Vendor allowances that are not a reimbursement of specific, incremental and identifiable costs to

promote a vendor’s products; and

— Cash discounts on payments to merchandise

vendors;

• Cost of services provided including;

— Payroll and benefits costs for services employees; and

— Cost of replacement parts and related freight

expenses;

• Physical inventory losses;

• Markdowns;

• Customer shipping and handling expenses;

• Costs associated with operating our distribution network,

including payroll and benefit costs, occupancy costs, and

depreciation;

• Freight expenses associated with moving merchandise

inventories from our distribution centers to our retail

stores; and

• Promotional financing costs.

SG&A

• Payroll and benefit costs for retail and corporate

employees;

• Occupancy costs of retail, services and corporate

facilities;

• Depreciation related to retail, services and corporateassets;

• Advertising;

• Vendor allowances that are a reimbursement of specific,

incremental and identifiable costs to promote a vendor’s

products;

• Charitable contributions;

• Outside service fees;

• Long-lived asset impairment charges; and

• Other administrative costs, such as credit card service

fees, supplies, and travel and lodging.



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stock-based compensation awards granted prior to, but not yet vested as of February 26, 2005, based on the

grant date fair value estimated in accordance with the

original provisions of SFAS No. 123, Accounting for

Stock-Based Compensation; and (ii) compensation

expense for all stock-based compensation awards granted

subsequent to February 26, 2005, based on the

grant-date fair value estimated in accordance with the

provisions of SFAS No. 123(R). We recognizecompensation expense on a straight-line basis over the

requisite service period of the award (or to an employee’s

eligible retirement date, if earlier). Total stock-based

compensation expense included in our consolidated

statements of earnings for fiscal 2008, 2007 and 2006

was $105 ($72, net of tax), $121 ($82, net of tax) and

$132 ($87, net of tax), respectively. In accordance with

the modified prospective transition method of SFAS No.123(R), financial results for prior periods have not been

restated.

2. Acquisitions

Speakeasy, Inc.

On May 1, 2007, we acquired Speakeasy for $103

in cash, or $89 net of cash acquired, which included

transaction costs and the repayment of $5 of Speakeasy’s

debt. We acquired Speakeasy, an independent U.S.

broadband, voice, data and information technology

services provider, to strengthen our portfolio of technology

solutions. We accounted for the acquisition using the

purchase method in accordance with SFAS No. 141,

Business Combinations. Accordingly, we recorded the

net assets at their estimated fair values, and included

operating results in our Domestic segment from the date

of acquisition. We allocated the purchase price on a

preliminary basis using information then available.

The allocation of the purchase price to the assets and

liabilities acquired will be finalized no later than the first

quarter of fiscal 2009. The premium we paid in excess

of the fair value of the net assets acquired was primarily

for the expected synergies we believe Speakeasy willgenerate by providing new technology solutions for our

existing and future customers, as well as to obtain

Speakeasy’s skilled, established workforce. None of the

goodwill is deductible for tax purposes.

The preliminary purchase price allocation, net of cash

acquired, was as follows:

Receivables $ 8

Property and equipment 7

Other assets 25

Tradename 6

Goodwill 74

Current liabilities (31)

Total $ 89

Jiangsu Five Star Appliance Co., Ltd.

On June 8, 2006, we acquired a 75% interest in FiveStar for $184, which included a working capital injection

of $122 and transaction costs. Five Star is an appliance

and consumer electronics retailer and had 131 stores

located in eight of China’s 34 provinces on the date of

acquisition. We made the investment in Five Star to

further our international growth plans, to increase our

knowledge of Chinese customers and to obtain an

immediate retail presence in China. We have acontractual commitment to acquire the remaining 25%

interest within the next several years, subject to Chinese

government approval. The acquisition was accounted for

using the purchase method in accordance with SFAS

No. 141. Accordingly, we recorded the net assets at their

estimated fair values, and included operating results in

our International segment from the date of acquisition.

We allocated the purchase price on a preliminary basis

using information then available. The allocation of the

purchase price to the assets and liabilities acquired was

finalized in the first quarter of fiscal 2008. There was no

significant adjustment to the preliminary purchase price

allocation. None of the goodwill is deductible for tax

purposes.




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The final purchase price allocation, net of cash acquired, was as follows:

Restricted cash $ 204

Merchandise inventories 109

Property and equipment 78

Other assets 80

Tradename 21

Goodwill 22

Accounts payable (368)

Other current liabilities (35)

Debt (64)

Long-term liabilities (1)

Minority interests (1) (33)

Total $ 13

(1) The minority owners’ proportionate share of assets andliabilities were recorded at historical carrying values.

The minority owners’ proportionate share of net earnings

was $3 and $1 in fiscal 2008 and 2007, respectively.

The carrying values of our investments were at fair value

at March 1, 2008, and March 3, 2007. As discussed in

Note 1, our investments include auction-rate securities,

the interest rates of which are reset through an auction

process, most commonly at intervals of 7, 28 and 35 days.

The same auction process has historically provided ameans by which we may rollover the investment or sell

Five Star owns a 40% interest in, and purchases appliancesfrom, Jiangsu Heng Xin Ge Li Air Conditioner Sales Co.,

Ltd. Purchases from this affiliate were $65 and $43 in

fiscal 2008 and 2007, respectively. At March 1, 2008,

and March 3, 2007, $22 and less than $1, respectively,

was due to this affiliate for the purchase of appliances.

3. Investments

Investments were comprised of the following:

March 1, March 3,2008 2007

Short-term investments

Debt securities $ 64 $2,588

Equity and other investments

Debt securities $417 $ 318

Marketable equity securities 172 4

Other investments 16 16Total equity and other investments $605 $ 338

these securities at par in order to provide us with liquidity

as needed. At March 1, 2008, we had $417 (par value)

of auction-rate securities.

Marketable Equity Securities

The carrying values of our investments in marketableequity securities at March 1, 2008, and March 3, 2007,


Debt Securities

The following table presents the fair values, related weighted-average interest rates (taxable equivalent) and major

security types for our investments:

March 1, 2008 March 3, 2007

Weighted- Weighted-Fair Average Fair Average Value Interest Rate Value Interest Rate

Short-term investments $ 64 4.94% $2,588 5.68%

Long-term investments 417 7.60% 318 5.68%

Total $481 $2,906

Auction-rate securities $417 $2,377

Municipal debt securities — 506

Commercial paper 64 —

Variable-rate demand notes and asset-backed securities — 23Total $481 $2,906



B E S T

B U Y


were $172 and $4, respectively. The increase inmarketable equity securities since March 3, 2007, was

primarily due to our investment in The Carphone

Warehouse Group PLC (“CPW”), Europe’s leading

independent retailer of mobile phones and services.

During the second quarter of fiscal 2008, we purchased

in the open market 26.1 million shares of CPW common

stock for $183, representing nearly 3% of CPW’s

outstanding shares.

Net unrealized losses, net of tax, included in accumulatedother comprehensive income were ($25) and ($1) at

March 1, 2008, and March 3, 2007, respectively.

Other Investments

The aggregate carrying values of investments accounted

for on either the cost method or the equity method, at

March 1, 2008, and March 3, 2007, were $16 and

$16, respectively.


Certain debt is secured by property and equipment with a

net book value of $87 and $80 at March 1, 2008, and

March 3, 2007, respectively.

Credit Facilities

On June 26, 2007, we entered into a $3,000 bridgeloan facility with Goldman Sachs Credit Partners L.P.

(the “Bridge Facility”), concurrent with the execution of

agreements to purchase $3,000 of shares of our common

stock in the aggregate pursuant to our ASR program. See

Note 5, Shareholders’ Equity , for further information on

the ASR program. We initially borrowed $2,500 under

the Bridge Facility and used $500 of our existing cash

and investments to fund the ASR program. Effective

July 11, 2007, we reduced the amount we could

borrow under the Bridge Facility to $2,500.

4. Debt

Short-term debt consisted of the following:

March 1, March 3,2008 2007

Revolving credit facilities, secured and unsecured, variable interest rates ranging

from 3.5% to 8.0% at March 1, 2008 $ 156 $ 20

Notes payable to banks, secured, paid October 2007 — 21

Total short-term debt $ 156 $ 41

Fiscal Year 2008 2007

Maximum month-end outstanding during the year $1,955 $ 78

Average amount outstanding during the year $ 655 $ 57

Weighted-average interest rate 4.5% 5.3%

Long-term debt consisted of the following:

March 1, March 3,2008 2007

Convertible subordinated debentures, unsecured, due 2022, interest rate 2.25% $ 402 $402

Financing lease obligations, due 2009 to 2023, interest rates ranging from 3.0% to 6.5% 197 171

Capital lease obligations, due 2010 to 2026, interest rates ranging from 5.1% to 8.8% 51 24

Other debt, due 2010 to 2022, interest rates ranging from 2.6% to 8.8% 10 12

Total long-term debt 660 609

Less: current portion (33) (19)

Total long-term debt, less current portion $ 627 $590



B E S T

B U Y


Effective July 2, 2007, we terminated our previous $200revolving credit facility that was scheduled to expire on

December 22, 2009.

On September 19, 2007, we entered into a $2,500

five-year unsecured revolving credit agreement (the

“Credit Agreement”) with JPMorgan Chase Bank, N.A.

(“JPMorgan”), as administrative agent, and a syndication

of banks (the “Lenders”). The Credit Agreement permits

borrowings up to $2,500, which may be increased up to$3,000 at our option and upon the consent of JPMorgan

and each of the Lenders providing an incremental credit

commitment. The Credit Agreement includes a $300 letter

of credit sub-limit and a $200 foreign currency sub-limit.

The Credit Agreement expires in September 2012.

Convertible Debentures

In January 2002, we sold convertible subordinateddebentures having an aggregate principal amount of

$402. The proceeds from the offering, net of $6 in

offering expenses, were $396. The debentures mature in

2022 and are callable at par, at our option, for cash on

or after January 15, 2007.

Holders may require us to purchase all or a portion of their

debentures on January 15, 2012, and January 15, 2017,

at a purchase price equal to 100% of the principal amount

of the debentures plus accrued and unpaid interest up to

but not including the date of purchase. We have the option

to settle the purchase price in cash, stock, or a combination

of cash and stock. On January 15, 2007, holders had the

option to require us to purchase all or a portion of their

debentures, at a purchase price equal to 100% of the

principal amount of the debentures plus accrued and

unpaid interest up to but not including the date of purchase. However, no debentures were so purchased.

The debentures become convertible into shares of our

common stock at a conversion rate of 21.7391 shares per

$0.001 principal amount of debentures, equivalent to an

initial conversion price of $46.00 per share, if the closing

price of our common stock exceeds a specified price for

20 consecutive trading days in a 30-trading day period

preceding the date of conversion, if our credit rating falls


below specified levels, if the debentures are called forredemption or if certain specified corporate transactions

occur. During a portion of fiscal 2007, our closing stock

price exceeded the specified stock price for more than

20 trading days in a 30-day trading period. Therefore,

debenture holders had the option to convert their

debentures into shares of our common stock. However, no

debentures were so converted. Due to changes in the

price of our common stock, the debentures were nolonger convertible at March 3, 2007, and have not been

convertible at the holders’ option through April 25, 2008.

The debentures have an interest rate of 2.25% per

annum. The interest rate may be reset, but not below

2.25% or above 3.25%, on July 15, 2011, and July 15,

2016. One of our subsidiaries has guaranteed the

convertible debentures.

5. Shareholders’ Equity

Stock Compensation Plans

Our outstanding stock options have a 10-year term.

Outstanding stock options issued to employees generally

vest over a four-year period, and outstanding stock

options issued to directors vest immediately upon grant.

Earnings per ShareOur basic earnings per share calculation is based on the

weighted-average number of common shares outstanding.

Our diluted earnings per share calculation is based on the

weighted-average number of common shares outstanding

adjusted by the number of additional shares that would

have been outstanding had the potentially dilutive common

shares been issued. Potentially dilutive shares of common

stock include stock options, nonvested share awards andshares issuable under our ESPP, as well as common shares

that would have resulted from the assumed conversion of

our convertible debentures (see Note 4, Debt ). Since the

potentially dilutive shares related to the convertible

debentures are included in the calculation, the related

interest expense, net of tax, is added back to earnings

from continuing operations, as the interest would not have

been paid if the convertible debentures had been converted



B E S T

B U Y

Appendix A Financial Statement Inf ormation A-17


At March 1, 2008, stock options to purchase 28.8 million shares of common stock were outstanding as follows (shares in

millions):

Exercisable Unexercisable Total

Weighted Weighted Weighted Average Average Average

Price Price PriceShares % per Share Shares % per Share Shares % per Share

In-the-money 16.5 93 $32.49 2.7 24 $43.60 19.2 67 $34.05

Out-of-the-money 1.2 7 54.65 8.4 76 50.53 9.6 33 51.04

Total 17.7 100 $34.00 11.1 100 $48.84 28.8 100 $39.73

2008 2007 2006

Numerator:

Net earnings, basic $1,407 $1,377 $1,140

Adjustment for assumed dilution:

Interest on convertible debentures due in 2022, net of tax 6 7 7Net earnings, diluted $1,413 $1,384 $1,147

Denominator (in millions):

Weighted-average common shares outstanding 439.9 482.1 490.3

Effect of potentially dilutive securities:

Shares from assumed conversion of convertible debentures 8.8 8.8 8.8

Stock options and other 4.2 5.3 5.7

Weighted-average common shares outstanding, assuming dilution 452.9 496.2 504.8

Basic earnings per share $ 3.20 $ 2.86 $ 2.33Diluted earnings per share $ 3.12 $ 2.79 $ 2.27

Repurchase of Common Stock

On June 26, 2007, our Board of Directors ("Board")

authorized a new $5,500 share repurchase program. The

new program terminated and replaced our prior $1,500

share repurchase program authorized by our Board in

June 2006. The June 2006 program terminated and

replaced a $1,500 share repurchase program authorized

by the Board in April 2005. There is no expiration date

governing the period over which we can make our share

repurchases under the June 2007 share repurchase

program. At March 1, 2008, $2,500 remains available

for future purchases under the June 2007 share

repurchase program. Repurchased shares have beenretired and constitute authorized but unissued shares.

to common stock. Nonvested market-based share awardsand nonvested performance-based share awards are

included in the average diluted shares outstanding each

period if established market or performance criteria havebeen met at the end of the respective periods.

The computation of dilutive shares outstanding excludes the

out-of-the-money stock options because such outstanding

options’ exercise prices were greater than the averagemarket price of our common shares and, therefore, the

effect would be antidilutive (i.e., including such options

would result in higher earnings per share). The following

table presents a reconciliation of the numerators and

denominators of basic and diluted earnings per share infiscal 2008, 2007 and 2006:



B E S T

B U Y


Open Market Repurchases

The following table presents open market share

repurchases in fiscal 2008, 2007 and 2006 (shares in

millions):

2008 2007 2006

Total number of shares

repurchased 9.8 11.8 18.3

Total cost of sharesrepurchased $461 $599 $772

During fiscal 2008, we purchased and retired 9.8 million

shares at a cost of $461 under our June 2006 share

repurchase program. During fiscal 2008, we made no

open market repurchases under our June 2007 share

repurchase program.

Comprehensive IncomeComprehensive income is computed as net earnings

plus certain other items that are recorded directly to


shareholders’ equity. In addition to net earnings, thesignificant components of comprehensive income include

foreign currency translation adjustments and unrealized

gains and losses, net of tax, on available-for-sale

marketable equity securities. Foreign currency translation

adjustments do not include a provision for income tax

expense when earnings from foreign operations are

considered to be indefinitely reinvested outside the U.S.

Comprehensive income was $1,693, $1,332 and $1,252in fiscal 2008, 2007 and 2006, respectively.

The components of accumulated other comprehensive

income, net of tax, were as follows:

March 1, March 3,2008 2007

Foreign currency translation $527 $217

Unrealized losses on

available-for-saleinvestments (25) (1)

Total $502 $216

6. Leases

The composition of net rent expense for all operating leases, including leases of property and equipment, was as follows

in fiscal 2008, 2007 and 2006:

2008 2007 2006

Minimum rentals $757 $679 $569

Contingent rentals 1 1 1

Total rent expense 758 680 570

Less: sublease income (22) (20) (18)

Net rent expense $736 $660 $552

The future minimum lease payments under our capital, financing and operating leases by fiscal year (not including

contingent rentals) at March 1, 2008, were as follows:

Capital Financing OperatingFiscal Year Leases Leases Leases

2009 $ 16 $ 29 $ 772

2010 16 29 761

2011 8 29 716

2012 2 28 666

2013 2 28 635

Thereafter 19 115 3,282

Subtotal 63 258 $6,832Less: imputed interest (12) (61)

Present value of lease obligations $ 51 $197



B E S T

B U Y


Total minimum lease payments have not been reduced byminimum sublease rent income of approximately $99 due

under future noncancelable subleases.

During fiscal 2008, we entered into agreements totaling

$35 related to various information system capital leases.

These leases were noncash transactions and have been

eliminated from our consolidated statements of cash

flows.

7. Benefit Plans We sponsor retirement savings plans for employees

meeting certain age and service requirements.

Participants may choose from various investment options

including a fund comprised of our company stock. The

total matching contributions, net of forfeitures, were $53,

$26 and $19 in fiscal 2008, 2007 and 2006,

respectively.


8. Income Taxes

The following is a reconciliation of the federal statutory income tax rate to income tax expense in fiscal 2008, 2007 and

2006:

2008 2007 2006

Federal income tax at the statutory rate $780 $747 $603State income taxes, net of federal benefit 67 38 34

Benefit from foreign operations (25) (36) (37)

Non-taxable interest income (17) (34) (28)

Other 10 37 9

Income tax expense $815 $752 $581

Effective income tax rate 36.6% 35.3% 33.7%

9. Segments

We operate two reportable segments: Domestic and

International. The Domestic segment is comprised of

all U.S. store, call center and online operations. The

International segment is comprised of all store, call center

and online operations outside the U.S. We have included

Speakeasy, which we acquired on May 1, 2007, in the

Domestic segment. Our segments are evaluated on an

operating income basis, and a stand-alone tax provision is

not calculated for each segment. The other accounting

policies of the segments are the same as those described in

Note 1, Summary of Significant Accounting Policies. The

following tables present our business segment information

for fiscal 2008, 2007 and 2006:



B E S T

B U Y


10. Contingencies and Commitments

Contingencies

We are involved in various other legal proceedings

arising in the normal course of conducting business. We

believe the amounts provided in our consolidatedfinancial statements, as prescribed by GAAP, are

adequate in light of the probable and estimable liabilities.

The resolution of those other proceedings is not expected

to have a material impact on our results of operations or

financial condition.

Commitments

We engage Accenture LLP (“Accenture”) to assist us withimproving our operational capabilities and reducing our

costs in the information systems, procurement and human

resources areas. Our future contractual obligations to

Accenture are expected to range from $76 to $272 per

year through 2012, the end of the periods under contract.

Prior to our engagement of Accenture, a significant portion

of these costs were incurred as part of normal operations.

We had outstanding letters of credit for purchaseobligations with a fair value of $90 at March 1, 2008.


At March 1, 2008, we had commitments for the purchase

and construction of facilities valued at approximately $45.

Also, at March 1, 2008, we had entered into lease

commitments for land and buildings for 104 future

locations. These lease commitments with real estatedevelopers provide for minimum rentals ranging from 5 to

20 years, which if consummated based on current cost

estimates, will approximate $72 annually over the initial

lease terms. These minimum rentals are reported in the

future minimum lease payments included in Note 6, Leases.

In April 2008, CompUSA, Inc. accepted our offer to

acquire the rights to 17 leases for $13.5. Pending

approval from the landlords, we expect to take possessionof all sites by June 2008. The total square footage related

to these leases is approximately 453,000 square feet, or

an average of approximately 27,000 square feet per site.

The remaining minimum lease terms range from 3 to 14

years, however, all leases include renewal options for an

additional 5 to 20 years. The sites are located throughout

the U.S., primarily in western states, and we anticipate

utilizing these sites over the next two fiscal years forplanned new stores for both Best Buy and Pacific Sales.

2008 2007 2006Revenue

Domestic $33,328 $31,031 $27,380

International 6,695 4,903 3,468

Total revenue $40,023 $35,934 $30,848

Operating Income

Domestic $ 1,999 $ 1,900 $ 1,588

International 162 99 56

Total operating income 2,161 1,999 1,644Other income (expense)

Investment income and other 129 162 107

Interest expense (62) (31) (30)

Earnings from operations before income tax expense,

minority interest and equity in loss of affiliates $ 2,228 $ 2,130 $ 1,721

Assets

Domestic $ 8,194 $10,614 $ 9,722

International 4,564 2,956 2,142Total assets $12,758 $13,570 $11,864

Alabama Albertville, Alexander City, Andalusia, Arab, Ardmore, Athens, Atmore, Attalla, Bay Minette, Bayou La Batre, Bessemer, Birmingham, Butler, Calera, Camden, Center Point, Centre, Childersburg, Clanton, Cullman,Daphne, Decatur, Demopolis, Dothan, Enterprise, Fairfield, Fairhope, Florence, Foley, Fort Payne, Gadsden, Gardendale, Gulf Shores, Guntersville, Haleyville, Hamilton, Hartselle, Hoover, Huntsville, Jackson, Jasper, Leeds,Linden, Luverne, Madison, Marion, Mobile, Montgomery, Moulton, Northport, Opelika, Opp, Oxford, Pelham, Pell City, Phenix City, Piedmont, Prattville, Robertsdale, Rogersville, Russellville, Saraland, Scottsboro, Selma,S it S l T ll Th ill T T l Al k A h B th l C d C i E l Ri F i b k Gl ll H i H J K i K t hik K di k P t b S d Sitk



RadioShack Corporation Financial Reports

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Lowell, Lynn, Malden, Marlborough, Marshfield, Medford, Milford, Nantucket, Natick, New Bedford, Newburyport, Newton, North Adams, North Attleboro, North Dartmouth, Northampton, Orleans, Peabody, Pittsfield,Plymouth, Quincy, Raynham, Revere, Roslindale, Saugus, South Attleboro, South Boston, South Dennis, South Easton, South Lawrence, South Yarmouth, Southbridge, Springfield, Stoneham, Stoughton, Sudbury,Swampscott, Swansea, Taunton, Vineyard Haven, Waltham, Watertown, Webster, West Springfield, Westborough, Westfield, Westford, Whitinsville, Wilmington, Woburn, Worcester Michigan Adrian, Albion, Allegan,Alpena, Ann Arbor, Auburn Hills, Bad Axe, Battle Creek, Bay City, Bellaire, Belleville, Benton Harbor, Benzonia, Big Rapids, Birmingham, Bloomfield, Boyne City, Brighton, Brooklyn, Brown City, Burton, Byron Center, Cadillac,Canton, Caro, Carson City, Cass City, Center Line, Charlevoix, Cheboygan, Chesaning, Chesterfield, Clare, Clinton Township, Clio, Coldwater, Commerce, Davison, Dearborn, Dearborn Heights, Detroit, Dowagiac, Eastpointe,Eaton Rapids, Escanaba, Evart, Farmington Hills, Farmington, Fenton, Ferndale, Flint, Fort Gratiot, Frankenmuth, Fremont, Gaylord, Grand Blanc, Grand Haven, Grand Rapids, Grayling, Greenville, Grosse Pointe, Hastings,Hemlock, Highland Park, Holland, Houghton Lake, Howell, Imlay City, Ionia, Iron Mountain, Ironwood, Ishpeming, Jackson, Jenison, Jonesville, Kalamazoo, Kalkaska, Kentwood, Lake Orion, L’Anse, Lansing, Lapeer, LincolnPark, Livonia, Ludington, Madison Heights, Manistee, Manistique, Marine City, Marquette, Marshall, Midland, Milford, Monroe, Mount Pleasant, Munising, Muskegon, Newberry, Niles, Novi, Oak Park, Okemos, Oscoda,Owosso, Petoskey, Pinconning, Plainwell, Pontiac, Port Huron, Portage, Redford, Reed City, Richmond, Rochester Hills, Rogers City, Roseville, Royal Oak, Saginaw, Sandusky, Sault St. Marie, Shelby, South Haven, Southfield,Southgate, St. Ignace, St. Johns, Standish, Stanton, Sturgis, Suttons Bay, Tawas City, Taylor, Three Oaks, Three Rivers, Traverse City, Troy, Utica, Vassar, Washington Township, Waterford, Wayne, Westland, White Cloud,White Pigeon, Whitehall, Woodhaven, Wyoming, Ypsilanti Minnesota Ada, Aitkin, Albany, Albert Lea, Alexandria, Apple Valley, Austin, Baudette, Baxter, Bemidji, Benson, Blaine, Bloomington, Brooklyn Center, Burnsville,Cambridge, Chanhassen, Coon Rapids, Cottage Grove, Crystal, Detroit Lakes, Duluth, Dundas, Eagan, Eden Prairie, Edina, Elk River, Erskine, Fairmont, Faribault, Fergus Falls, Forest Lake, Golden Valley, Grand Marais, GrandRapids, Hibbing, Hilltop, Hutchinson, International Falls, Jackson, Lake City, Le Sueur, Litchfield, Little Falls, Long Prairie, Mankato, Maple Grove, Marshall, Minneapolis, Minnetonka, Montevideo, Monticello, Moorhead,Moose Lake, Mora, Morris, New Ulm, North Branch, Ortonville, Owatonna, Park Rapids, Pelican Rapids, Pine City, Princeton, Red Wing, Redwood Falls, Richfield, Rochester, Roseau, Roseville, Saint Cloud, Saint Paul,Savage, Shakopee, Sleepy Eye, St. Cloud, St. James, St. Louis Park, St. Paul, St. Peter, Stillwater, Thief River Falls, Vadnais Heights, Virginia, Walker, Warroad, Waseca, Wayzata, Willmar, Windom, Winona, Woodbury,Worthington, Young America Mississippi Amory, Batesville, Biloxi, Booneville, Brookhaven, Canton, Carthage, Clarksdale, Cleveland, Clinton, Columbia, Columbus, Corinth, Crystal Springs, D’Iberville, Flora, Greenville,Greenwood, Grenada, Gulfport, Hattiesburg, Houston, Jackson, Laurel, Lucedale, Magee, McComb, Mendenhall, Meridian, Monticello, Morton, Natchez, New Albany, Ocean Springs, Olive Branch, Oxford, Pascagoula, Pearl,Philadelphia, Picayune, Pontotoc, Poplarville, Prentiss, Purvis, Quitman, Ridgeland, Senatobia, Southaven, Starkville, Tupelo, Tylertown, Vicksburg, Waynesboro, West Point, Wiggins, Yazoo City Missouri Alton, Arnold,

Sumiton, Sylacauga, Tallassee, Thomasville, Troy, Tuscaloosa Alaska Anchorage, Bethel, Cordova, Craig, Eagle River, Fairbanks, Glennallen, Haines, Homer, Juneau, Kenai, Ketchikan, Kodiak, Petersburg, Seward, Sitka,Skagway, Soldotna, Valdez, Wasilla Arizona Ajo, Apache Junction, Avondale, Benson, Bullhead City, Camp Verde, Casa Grande, Chandler, Chino Valley, Colorado City, Coolidge, Cottonwood, Douglas, Flagstaff, Florence,Fort Mohave, Fountain Hills, Gilbert, Glendale, Greenvalley, Heber, Holbrook, Kayenta, Kingman, Lake Havasu, Lakeside, Maricopa, Mesa, Miami, Morenci, New River, Nogales, Oro Valley, Parker, Payson, Peoria, Phoenix,Prescott, Prescott Valley, Quartzsite, Safford, San Manuel, Scottsdale, Sedona, Show Low, Sierra Vista, Springerville, St. Johns, Sun City, Surprise, Taylor, Tempe, Thatcher, Tuba City, Tucson, Wickenburg, Willcox, Yuma Arkansas Arkadelphia, Ash Flat, Batesville, Beebe, Benton, Bentonville, Berryville, Brinkley, Bryant, Cabot, Camden, Cave City, Clarksville, Clinton, Conway, Danville, De Queen, De Witt, Dumas, El Dorado, Fayetteville, Flippin,Forrest City, Fort Smith, Glenwood, Harrison, Heber Springs, Hope, Hot Springs, Jacksonville, Jasper, Jonesboro, Little Rock, Magnolia , Malvern, Mammoth Springs, Marshall, Melbourne, Mena, Mountain Home, MountainView, North Little Rock, Nashville, Newport, Paragould, Paris, Pine Bluff, Prescott, Rogers, Russellville, Salem, Searcy, Sheridan, Siloam Springs, Springdale, Star City, Stuttgart, Van Buren, West Helena, West Memphis,Wynne California Agoura, Alameda, Albany, Alhambra, Alta Loma, Alturas, American Canyon, Anaheim, Anaheim Hills, Anderson, Angels Camp, Antioch, Apple Valley, Arcadia, Arcata, Arnold, Arroyo Grande, Atascadero,Atwater, Auburn, Avalon, Azusa, Bakersfield, Baldwin Park, Barstow, Beaumont, Bell, Belmont, Benicia, Berkeley, Beverly Hills, Big Bear Lake, Bishop, Blue Jay, Blythe, Brawley, Brea, Buellton, Buena Park, Burbank,Burlingame, Calexico, California City, Camarillo, Canoga Park, Canyon Country, Capitola, Carlsbad, Carmichael, Carpinteria, Carson, Castro Valley, Cathedral City, Cerritos, Chatsworth, Chico, Chino, Chino Hills, Chula Vista,Citrus Heights, City of Industry, Clearlake, Cloverdale, Clovis, Coachella, Coalinga, Colton, Colusa, Compton, Concord, Corcoran, Corning, Corona, Corte Madera, Costa Mesa, Covina, Crescent City, Crestline, Culver City,Cupertino, Cypress, Daly City, Dana Point, Danville, Davis, Del Mar, Delano, Desert Hot Springs, Diamond Bar, Dinuba, Downey, Duarte, Dublin, E Los Angeles, El Cajon, El Centro, El Cerrito, El Monte, Elk Grove, Emeryville,Encinitas, Encino, Escondido, Eureka, Fairfield, Fall River Mills, Fallbrook, Folsom, Fontana, Foothill Ranch, Fortuna, Foster City, Fountain Valley, Freedom, Fremont, Fresno, Fort Bragg, Fullerton, Garberville, Garden Grove,Gardena, Gilroy, Glendale, Glendora, Goleta, Gonzales, Granada Hills, Grass Valley, Greenfield, Grover Beach, Hanford, Harbor City, Hawthorne, Hayward, Hemet, Hercules, Hesperia, Highland, Hollister, Hollywood,Huntington Beach, Huntington Park, Indio, Inglewood, Irvine, Jackson, King City, La Habra, La Jolla, La Mesa, La Mirada, La Puente, La Quinta, La Verne, Lafayette, Laguna Hills, Laguna Niguel, Lake Elsinore, Lake Isabella,

Lakeport, Lakewood, Lancaster, Lawndale, Lemoore, Lincoln Heights, Livermore, Lodi, Lompoc, Long Beach, Los Alamitos, Los Angeles, Los Banos, Los Gatos, Los Osos, Lynwood, Madera, Malibu, Mammoth Lakes,Manhattan Beach, Manteca, Marina Del Rey, Martinez, Marysville, Maywood, Merced, Milpitas, Mission Hills, Modesto, Mojave, Monrovia, Montclair, Montebello, Monterey, Monterey Park, Montrose, Moorpark, MorenoValley, Morgan Hill, Morro Bay, Mountain View, Mount Shasta, Murrieta, Napa, National City, Newbury Park, Newhall, Newport Beach, North Highlands, North Hollywood, Northridge, Norwalk, Novato, Oakdale, Oakhurst,Oakland, Oakley, Oceanside, Ojai, Ontario, Orange, Orangevale, Orland, Oroville, Oxnard, Pacifica, Palm Desert, Palm Springs, Palmdale, Palo Alto, Panorama City, Paradise, Paramount, Pasadena, Paso Robles, Patterson,Perris, Petaluma, Phelan, Pico Rivera, Pinole, Pittsburg, Placentia, Placerville, Pleasant Hill, Pleasanton, Pollock Pines, Pomona, Porterville, Poway, Quincy, Ramona, Rancho Cordova, Rancho Cucamonga, Rancho SantaMargarita, Red Bluff, Redding, Redlands, Redondo Beach, Redwood City, Reedley, Rialto, Ridgecrest, Rio Vista, Riverbank, Riverside, Rocklin, Rohnert Park, Rolling Hills, Rosamond, Rosemead, Roseville, Rowland Heights,Sacramento, Salinas, San Bernardino, San Bruno, San Clemente, San Diego, San Dimas, San Francisco, San Jose, San Leandro, San Luis Obispo, San Marcos, San Mateo, San Pablo, San Pedro, San Rafael, San Ramon,Sanger, Santa Ana, Santa Barbara, Santa Clara, Santa Cruz, Santa Maria, Santa Monica, Santa Paula, Santa Rosa, Santee, Saugus, Scotts Valley, Seal Beach, Seaside, Sebastopol, Selma, Sherman Oaks, Signal Hill, Simi,San Juan Capistrano, Soledad, Sonoma, Sonora, South Gate, South Lake Tahoe, South Pasadena, South San Francisco, Spring Valley, Stockton, Studio City, Sun Valley, Sunnyvale, Susanville, Sylmar, Taft, Tehachapi,Temecula, Temple City, Thousand Oaks, Torrance, Tracy, Truckee, Tujunga, Tulare, Turlock, Tustin, Twentynine Palms, Ukiah, Union City, Upland, Vacaville, Valencia, Vallejo, Valley Springs, Van Nuys, Venice, Ventura,Victorvill e, Visalia, Vista, Walnut Creek, Wasco, Watsonville, Weaverville , West Covina, West Hollywood, West Los Angeles, West Sacramento , Westchester, Westminster, Whittier, Willits, Willows, Wilmington, Windsor,Woodland, Woodland Hills, Yorba Linda, Yreka, Yuba City, Yucaipa, Yucca ValleyColorado Alamosa, Arvada, Aspen, Aurora, Avon, Bayfield, Bennett, Boulder, Brighton, Broomfield, Buena Vista, Burlington, Canon City, CastleRock, Castle Rock, Centennial, Center, Colorado Springs, Conifer, Cortez, Craig, Crested Butte, Denver, Durango, Elizabeth, Englewood, Estes Park, Evergreen, Flagler, Fort Collins, Fountain, Fraser, Frisco, Glenwood Spring,Golden, Grand Junction, Greeley, Greenwood Village, Gunnison, Highlands Ranch, Holyoke, Idaho Springs, La Junta, Lafayette, Lakewood, Lamar, Limon, Littleton, Longmont, Loveland, Meeker, Monte Vista, Montrose,Monument, Northglenn, Pagosa Springs, Paonia, Parachute, Parker, Pueblo, Rifle, Salida, Springfield, Steamboa t Springs, Sterling, Thornton, Westminster, Woodland Park, Wray, YumaConnecticut Avon, Barkhamsted,Bloomfield, Branford, Bridgeport, Bristol, Canaan, Cheshire, Clinton, Cos Cob, Cromwell, Danbury, Derby, East Haven, Enfield, Fairfield, Farmington, Glastonbury, Groton, Guilford, Hamden, Hartford, Manchester, Meriden,Middletown, Milford, Naugatuck, New Britain, New Canaan, New Haven, New London, New Milford, Newington, Newtown, North Haven, Norwalk, Norwich, Old Saybrook, Orange, Plainfield, Putnam, Ridgefield, Riverside,Southbury, Southington, Stamford, Torrington, Trumbull, Vernon, Wallingford, Waterbury, Waterford, Watertown, West Hartford, Westport, Wethersfield, Willimantic, Wilton, Windsor, D.C. Washington Delaware Bear,Claymont, Dover, Georgetown, Middletown, Milford, New Castle, Newark, Rehoboth Beach, Seaford, Smyrna, Wilmington FloridaAlachua, Altamonte, Altamonte Springs, Apopka, Arcadia, Atlantic Beach, Auburndale, AvonPark, Bartow, Bayonet Point, Belle Glade, Belleview, Big Pine Key, Boca Raton, Bonita Springs, Boynton Beach, Bradenton, Brandon, Branford, Brooksville, Callaway, Cape Coral, Casselberry, Century, Chiefland, Chipley,Clearwater, Clermont, Clewiston, Cocoa, Cocoa Beach, Cooper City, Coral Gables, Coral Springs, Crawfordville, Crestview, Crystal River, Davie, Daytona Beach, Deerfield, Deerfield Beach, Defuniak Springs, Deland, DelrayBeach, Deltona, Destin, Dunnellon, Englewood, Fernandina Beach, Florida City, Fort Lauderdale, Fort Myers, Fort Pierce, Fort Walton Beach, Gainesville, Greenacres, Gulf Breeze, Haines City, Hialeah, Hilliard, Holiday,Hollywood, Homestead, Homosassa, Immokalee, Indiantown, Inverness, Jacksonville, Jensen Beach, Jupiter, Key Largo, Key West, Keystone Heights, Kissimmee, Lady Lake, Lake City, Lake Mary, Lake Placid, Lake Wales,Lake Worth, Lakeland, Lantana, Largo, Lauderdale Lakes, Lauderhill, Leesburg, Lehigh Acres, Live Oak, Longwood, Lutz, Macclenny, Madison, Marathon, Marco Island, Margate, Marianna, Mary Esther, Melbourne, MerrittIsland, Miami, Miami Beach, Milton, Miramar, Monticello, Mount Dora, North Fort Myers, North Miami Beach, Naples, Navarre, New Port Richey, New Smyrna Beach, Niceville, Oakland Park, Ocala, Ocoee, Okeechobee,Orange City, Orange Park, Orlando, Ormond Beach, Oviedo, Palatka, Palm Bay, Palm Beach Garden, Palm Coast, Palm Harbor, Panama City, Pembroke Pines, Pensacola, Perry, Plant City, Plantation, Pompano Beach, PortCharlotte, Port Orange, Port Richey, Port St. Joe, Port St. Lucie, Punta Gorda, Riverview, Royal Palm Beach, Ruskin, Sanford, Santa Rosa Beach, Sarasota, Satellite Beach, Sebastian, Sebring, Seffner, Seminole, SouthDaytona, Spring Hill, St. Augustine, St. Cloud, St. Petersburg, Starke, Stuart, Sunrise, Tallahassee, Tampa, Tarpon Springs, Temple Terrace, Tequesta, Titusville, Venice, Vero Beach, Wauchula, Wellington, West Palm Beach,Weston, Wildwood, Wilton Manors, Winter Haven, Winter Park, Winter Springs, ZephyrhillsGeorgia Adel, Albany, Alpharetta, Americus, Athens, Atlanta, Augusta, Austell, Bainbridge, Barnesville, Baxley, Blairsville, Blakely,Blue Ridge, Brunswick, Buford, Cairo, Calhoun, Canton, Carrollton, Cartersville, Cedartown, Centerville, Chamblee, Chatsworth, Clayton, Cleveland, Columbus, Commerce, Conyers, Cordele, Cornelia, Covington, Cumming,Cuthbert, Dahlonega, Dalton, Dawson, Dawsonville, Decatur, Donalsonville, Douglas, Douglasville, Dublin, Duluth, East Ellijay, Elberton, Fayetteville, Fitzgerald, Folkston, Forest Park, Forsyth, Fort Gaines, Fort Oglethorpe,Fort Valley, Gainesville, Griffin, Hampton, Hartwell, Hazlehurst, Hiawassee, Hinesville, Hiram, Homerville, Jackson, Jasper, Jesup, Kennesaw, Lafayette, Lagrange, Lawrenceville, Lilburn, Lincolnton, Lithonia, Macon,Madison, Marietta, Martinez, Mc Rae, McDonough, Metter, Milledgeville, Monroe, Monticello, Morrow, Moultrie, Nashville, Newnan, Norcross, Oakwood, Peachtree City, Perry, Quitman, Richmond Hill, Riverdale, Rockmart,Rome, Roswell, Royston, Savannah, Smyrna, Snellville, St. Marys, St. Simons Island, Statesboro, Stockbridge, Stone Mountain, Summerville, Suwanee, Sylvania, Sylvester, Thomaston, Thomasville, Thomson, Tifton, Toccoa,Trenton, Union City, Valdosta, Vidalia, Villa Rica, Warner Robins, Washington, Waycross, Winder, Woodbury, Woodstock Hawaii Aiea, Ewa Beach, Haleiwa, Hilo, Honolulu, Kahului, Kailua, Kailua-Kona, Kamuela, Kaneohe,Kapolei, Kihei, Lahaina, Lihue, Mililani, Wahiawa, Waianae, Waipahu Idaho American Falls, Blackfoot, Boise, Bonners Ferry, Buhl, Burley, Caldwell, Chubbuck, Coeur d’Alene, Cottonwood, Driggs, Emmett, Grangeville, Hailey,Idaho Falls, Lewiston, McCall, Meridian, Montpelier, Moscow, Mountain Home, Nampa, Orofino, Pocatello, Post Falls, Rexburg, Rigby, Salmon, Sandpoint, Twin Falls, Wendell Illinois Aledo, Alton, Anna, Antioch, Arcola,Arlington Heights, Arthur, Aurora, Bartlett, Batavia, Belleville, Belvidere, Bensenville, Benton, Berwyn, Bloomingdale, Bloomington, Blue Island, Bolingbrook, Bourbonnais, Burbank, Calumet City, Canton, Carbondale,Carlinville, Carmi, Centralia, Champaign, Channahon, Chester, Chicago, Chicago Heights, Cicero, Collinsville, Crystal Lake, Danville, Decatur, Des Plaines, Dixon, Dolton, Downers Grove, Du Quoin, Dwight, East Peoria, EastSt Louis, Effingham, El Paso, Elgin, Elk Grove Village, Eureka, Evanston, Fairbury, Fairfield, Fairview Heights, Flora, Fox Lake, Frankfort, Freeport, Galesburg, Geneseo, Gibson City, Glen Carbon, Glen Ellyn, Glencoe, Glenview,Granite City, Greenville, Gurnee, Harrisburg, Havana, Highland, Highland Park, Hoffman Estates, Homer Glen, Homewood, Hoopeston, Jacksonville, Jerseyville, Joliet, Kankakee, Kewanee, La Grange, Lake Zurich, Lansing,Lemont, Lincoln, Litchfield, Lake in the Hills, Lombard, Machesney Park, Macomb, Marengo, Marion, Markham, Mascoutah, Matteson, Mattoon, McHenry, Melrose Park, Mendota, Midlothian, Moline, Montgomery, Morris,Mount Vernon, Mundelein, Naperville, Nashville, Niles, Norridge, North Riverside, Oak Lawn, Oak Park, Olney, Ottawa, Palatine, Palos Heights, Paris, Pekin, Peoria, Peru, Petersburg, Pontiac, Princeton, Quincy, Robinson,

Rochelle, Rockford, Round Lake Beach, Salem, Sandwich, Savanna, Savoy, Schaumburg, Seneca, Shiloh, Skokie, South Elgin, South Holland, Sparta, Springfield, St. Charles, Staunton, Sterling, Streator, Sullivan, Sycamore,Tinley Park, Tuscola, Urbana, Vernon Hills, Villa Park, Virden, Waterloo, Watseka, Waukegan, West Dundee, Wheaton, Wheeling, Willowbrook, Wilmi ngton, Wood River, Yorkville, Zion Indiana Anderson, Angola, Argos,Auburn, Aurora, Avon, Batesville, Bedford, Berne, Bicknell, Bloomington, Bluffton, Brazil, Bremen, Brook, Brookville, Brownsburg, Brownstown, Cannelton, Carmel, Clarksville, Columbia City, Columbus, Corydon, Covington,Crawfordsville, Crown Point, Decatur, Demotte, Elkhart, Elwood, Evansville, Fishers, Fort Wayne, Fowler, Frankfort, Franklin, Gary, Goshen, Greencastle, Greenfield, Greensburg, Greenwood, Griffith, Hammond, Hobart,Huntington, Indianapolis, Jasper, Kendallville, Knox, Kokomo, La Porte, Lafayette, Lagrange, Lebanon, Ligonier, Linton, Madison, Marion, Martinsville, Merrillville, Michigan City, Mishawaka, Monticello, Mooresville, Muncie,Munster, Nappanee, New Albany, New Carlisle, New Castle, New Haven, Noblesville, North Manchester, North Vernon, Paoli, Peru, Petersburg, Plainfield, Plymouth, Portage, Portland, Princeton, Rensselaer, Richmond,Rising Sun, Rochester, Rockport, Rockville, Rushville, Schererville, Seymour, Shelbyville, South Bend, Syracuse, Terre Haute, Tipton, Valparaiso, Vincennes, W Lafayette, Wabash, Warsaw, Washington, Winamac, Winchester Iowa Adel, Altoona, Ames, Ankeny, Atlantic, Belle Plaine, Boone, Carroll, Cedar Falls, Cedar Rapids, Chariton, Charles City, Cherokee, Clarinda, Clinton, Coralville, Council Bluffs, Cresco, Creston, Davenport, Decorah,Denison, Des Moines, Dubuque, Dyersville, Eagle Grove, Estherville, Fairfield, Fort Dodge, Fort Madison, Garner, Glenwood, Greenfield, Grinnell, Hampton, Harlan, Humboldt, Independence, Iowa City, Iowa Falls, Jefferson,Keokuk, Knoxville, Le Mars, Logan, Manchester, Maquoketa, Marengo, Marshalltown, Mason City, Mount Pleasant, Muscatine, New Hampton, Newton, Orange City, Osage, Osceola, Ottumwa, Pella, Perry, Pocahontas, RedOak, Rock Valley, Sac City, Sheldon, Sioux Center, Sioux City, Spencer, Spirit Lake, Stuart, Vinton, Washington, Waterloo, Webster City, West Burlington, West Des Moines, West Union, Winterset Kansas Abilene, Anthony,Arkansas City, Atchison, Atwood, Bonner Springs, Burlington, Chanute, Clay Center, Colby, Columbus, Concordia, Derby, Dodge City, El Dorado, Ellsworth, Emporia, Fort Scott, Garden City, Garnett, Girard, Goodland, GreatBend, Hays, Hillsboro, Horton, Hutchinson, Independence, Iola, Junction City, Kansas City, Lawrence, Leavenworth, Lenexa, Liberal, Manhattan, McPherson, Mission, Newton, Oakley, Olathe, Osage City, Osawatomie,Ottawa, Overland Park, Parsons, Pittsburg, Pratt, Salina, Scott City, Seneca, Shawnee Mission, Syracuse, Topeka, Ulysses, Wellington, Wichita, Winfield Kentucky Alexandria, Ashland, Barbourville, Bardstown, Bardwell,Beaver Dam, Berea, Bowling Green, Brandenburg, Cadiz, Campbellsville, Campton, Carrollton, Central City, Columbia, Cynthiana, Danville, Dry Ridge, Elizabethtown, Erlanger, Falmouth, Flemingsburg, Florence, Frankfort,Franklin, Georgetown, Glasgow, Grayson, Hazard, Henderson, Hopkinsville, Jackson, La Center, La Grange, Latonia, Lebanon, Lexington, London, Louisville, Madisonville, Mayfield, Maysville, Middlesboro, Monticello,Morehead, Morgantown, Mount Sterling, Mount Vernon, Murray, Newport, Nicholasville, Owensboro, Paducah, Paris, Pikeville, Pineville, Prestonsburg, Princeton, Radcliff, Richmond, Russell Springs, Russellville,Salyersville, Scottsville, Shelbyville, Somerset, South Williamson, Stanton, Taylorsville, Warsaw, West Liberty, Whitley City, Williamsburg, Winchester Louisiana Abbeville, Alexandria, Bastrop, Baton Rouge, Bogalusa, BossierCity, Boutte, Crowley, Cut Off, Denham Springs, Deridder, Eunice, Franklinton, Gonzales, Hammond, Harahan, Harvey, Houma, Jeanerette, Jena, Jennings, Kenner, Kentwood, La Place, Lafayette, Lake Charles, Leesville,Mandeville, Mansfield, Many, Metairie, Minden, Monroe, Morgan City, Natchitoches, New Iberia, New Orleans, New Roads, Oakdale, Opelousas, Pineville, Plaquemine, Rayne, Ruston, Shreveport, Slidell, Springhill, St.Francisville, Sulphur, Thibodaux, Ville Platte, West Monroe, Westwego, Winfield, Winnsboro, Zachary Maine Auburn, Augusta, Bangor, Bar Harbor, Belfast, Biddeford, Boothbay Harbor, Brunswick, Bucksport, Damariscotta,

Dover-Foxcroft, Ellsworth, Falmouth, Farmington, Fort Kent, Lewiston, Machias, Madawaska, Mexico, Millinocket, Oxford, Portland, Presque Isle, Rockland, Sanford, Skowhegan, South Portland, Standish, Topsham,Waterville, Wells, Windham Maryland Aberdeen, Annapolis, Baltimore, Bel Air, Beltsville, Bethesda, Bowie, Burtonsville, Cambridge, Catonsville, Charlotte Hall, Chestertown, Clinton, Cockeysville, College Park, Columbia,Denton, Derwood, Dunkirk, Easton, Edgewood, Eldersburg, Elkton, Ellicott City, Forestville, Fort Washington, Frederick, Gaithersburg, Gambrills, Germantown, Glen Burnie, Greenbelt, Hagerstown, Hampstead, Hanover,Hyattsvill e, Kensington, La Plata, La Vale, Largo, Laurel, Leonardtown, Lexington Park, Marlow Heights, Mc Henry, Mount Airy, Oakland, Ocean City, Odenton, Olney, Owings Mills, Oxon Hill, Oxon Hill, Pasadena, PocomokeCity, Potomac, Prince Fredrick, Randallstown, Reisterstown, Rockvil le, Salisbury, Seat Pleasant, Severna Park, Silver Spring, Stevensvill e, Takoma Park, Towson, Waldorf, Westminster, Wheaton Massachusetts Acton,Andover, Ashland, Athol, Auburn, Bedford, Beverly, Billerica, Boston, Braintree, Bridgewater, Brockton, Brookline, Burlington, Cambridge, Chelmsford, Chicopee, Danvers, Dedham, Dorchester, East Boston, East Walpole,East Wareham, Fairhaven, Fall River, Falmouth, Fitchburg, Foxboro, Franklin, Gardner, Gloucester, Greenfield, Great Barrington, Hadley, Hanover, Haverhill, Holyoke, Hyannis, Kingston, Lanesborough, Lenox, Leominster,Lowell, Lynn, Malden, Marlborough, Marshfield, Medford, Milford, Nantucket, Natick, New Bedford, Newburyport, Newton, North Adams, North Attleboro, North Dartmouth, Northampt on, Orleans, Peabody, Pittsfield,Plymouth, Quincy, Raynham, Revere, Roslindale, Saugus, South Attleboro, South Boston, South Dennis, South Easton, South Lawrence, South Yarmouth, Southbridge, Springfield, Stoneham, Stoughton, Sudbury,Swampscott, Swansea, Taunton, Vineyard Haven, Waltham, Watertown, Webster, West Springfield, Westborough, Westfield, Westford, Whitinsville, Wilmington, Woburn, Worcester Michigan Adrian, Albion, Allegan,Alpena, Ann Arbor, Auburn Hills, Bad Axe, Battle Creek, Bay City, Bellaire, Belleville, Benton Harbor, Benzonia, Big Rapids, Birmingham, Bloomfield, Boyne City, Brighton, Brooklyn, Brown City, Burton, Byron Center, Cadillac,Canton, Caro, Carson City, Cass City, Center Line, Charlevoix, Cheboygan, Chesaning, Chesterfield, Clare, Clinton Township, Clio, Coldwater, Commerce, Davison, Dearborn, Dearborn Heights, Detroit, Dowagiac, Eastpointe,Eaton Rapids, Escanaba, Evart, Farmington Hills, Farmington, Fenton, Ferndale, Flint, Fort Gratiot, Frankenmuth, Fremont, Gaylord, Grand Blanc, Grand Haven, Grand Rapids, Grayling, Greenville, Grosse Pointe, Hastings,Hemlock, Highland Park, Holland, Houghton Lake, Howell, Imlay City, Ionia, Iron Mountain, Ironwood, Ishpeming, Jackson, Jenison, Jonesville, Kalamazoo, Kalkaska, Kentwood, Lake Orion, L’Anse, Lansing, Lapeer, LincolnPark, Livonia, Ludington, Madison Heights, Manistee, Manistique, Marine City, Marquette, Marshall, Midland, Milford, Monroe, Mount Pleasant, Munising, Muskegon, Newberry, Niles, Novi, Oak Park, Okemos, Oscoda,Owosso, Petoskey, Pinconning, Plainwell, Pontiac, Port Huron, Portage, Redford, Reed City, Richmond, Rochester Hills, Rogers City, Roseville, Royal Oak, Saginaw, Sandusky, Sault St. Marie, Shelby, South Haven, Southfield,Southgate, St. Ignace, St. Johns, Standish, Stanton, Sturgis, Suttons Bay, Tawas City, Taylor, Three Oaks, Three Rivers, Traverse City, Troy, Utica, Vassar, Washington Township, Waterford, Wayne, Westland, White Cloud,White Pigeon, Whitehall, Woodhaven, Wyoming, Ypsilanti Minnesota Ada, Aitkin, Albany, Albert Lea, Alexandria, Apple Valley, Austin, Baudette, Baxter, Bemidji, Benson, Blaine, Bloomington, Brooklyn Center, Burnsville,Cambridge, Chanhassen, Coon Rapids, Cottage Grove, Crystal, Detroit Lakes, Duluth, Dundas, Eagan, Eden Prairie, Edina, Elk River, Erskine, Fairmont, Faribault, Fergus Falls, Forest Lake, Golden Valley, Grand Marais, GrandRapids, Hibbing, Hilltop, Hutchinson, International Falls, Jackson, Lake City, Le Sueur, Litchfield, Little Falls, Long Prairie, Mankato, Maple Grove, Marshall, Minneapolis, Minnetonka, Montevideo, Monticello, Moorhead,Moose Lake, Mora, Morris, New Ulm, North Branch, Ortonville, Owatonna, Park Rapids, Pelican Rapids, Pine City, Princeton, Red Wing, Redwood Falls, Richfield, Rochester, Roseau, Roseville, Saint Cloud, Saint Paul,Savage, Shakopee, Sleepy Eye, St. Cloud, St. James, St. Louis Park, St. Paul, St. Peter, Stillwater, Thief River Falls, Vadnais Heights, Virginia, Walker, Warroad, Waseca, Wayzata, Willmar, Windom, Winona, Woodbury,

Worthington, Young America Mississippi Amory, Batesville, Biloxi, Booneville, Brookhaven, Canton, Carthage, Clarksdale, Cleveland, Clinton, Columbia, Columbus, Corinth, Crystal Springs, D’Iberville, Flora, Greenville,Greenwood, Grenada, Gulfport, Hattiesburg, Houston, Jackson, Laurel, Lucedale, Magee, McComb, Mendenhall, Meridian, Monticello, Morton, Natchez, New Albany, Ocean Springs, Olive Branch, Oxford, Pascagoula, Pearl,Philadelphia, Picayune, Pontotoc, Poplarville, Prentiss, Purvis, Quitman, Ridgeland, Senatobia, Southaven, Starkville, Tupelo, Tylertown, Vicksburg, Waynesboro, West Point, Wiggins, Yazoo City Missouri Alton, Arnold,

R A D I O S H A C K

A 22 A endi A Financial Statement Information



R A D I O S H A C K


CONSOLIDATED BALANCE SHEETSRadioShack Corporation and Subsidiaries

December 31,

(In millions, except for share amounts) 2007 2006

AssetsCurrent assets:

Cash and cash equivalents $ 509.7 $ 472.0Accounts and notes receivable, net 256.0 247.9Inventories 705.4 752.1Other current assets 95.7 127.6

Total current assets 1,566.8 1,599.6

Property, plant and equipment, net 317.1 386.3Other assets, net 105.7 84.1Total assets $ 1,989.6 $ 2,070.0

Liabilities and Stockholders’ EquityCurrent liabilities:

Short-term debt, including current maturities of

long-term debt $ 61.2 $ 194.9Accounts payable 257.6 254.5Accrued expenses and other current liabilities 393.5 442.2Income taxes payable 35.7 92.6

Total current liabilities 748.0 984.2

Long-term debt, excluding current maturities 348.2 345.8Other non-current liabilities 123.7 86.2

Total liabilities 1,219.9 1,416.2

Commitments and contingent liabilities

Stockholders’ equity:Preferred stock, no par value, 1,000,000 shares

authorized:Series A junior participating, 300,000 shares — —

designated and none issuedCommon stock, $1 par value, 650,000,000 shares

authorized; 191,033,000 shares issued 191.0 191.0Additional paid-in capital 108.4 92.6Retained earnings 1,992.1 1,780.9

Treasury stock, at cost; 59,940,000 and55,196,000 shares, respectively (1,516.5) (1,409.1)Accumulated other comprehensive loss (5.3) (1.6)

Total stockholders’ equity 769.7 653.8Total liabilities and stockholders’ equity $ 1,989.6 $ 2,070.0

AppendixA Financial Statement Information A-23




R A D I O S H A C K

CONSOLIDATED STATEMENTS OF INCOMERadioShack Corporation and Subsidiaries

Year Ended December 31,

2007 2006 2005

% of % of % of(In millions, except per

share amounts) Dollars Revenues Dollars Revenues Dollars Revenues

Net sales and operatingrevenues $4,251.7 100.0% $4,777.5 100.0% $5,081.7 100.0%

Cost of products sold(includesdepreciation amounts of$10.0 million, $10.7 millionand $10.3 million,respectively) 2,225.9 52.4 2,648.1 55.4 2,815.0 55.4

Gross profit 2,025.8 47.6 2,129.4 44.6 2,266.7 44.6

Operating expenses:Selling, general and

administrative 1,538.5 36.2 1,810.7 37.9 1,803.3 35.5

Depreciation andamortization 102.7 2.4 117.5 2.5 113.5 2.2Impairment of long-lived

assets and other charges 2.7 — 44.3 0.9 — —

Total operating expenses 1,643.9 38.6 1,972.5 41.3 1,916.8 37.7

Operating income 381.9 9.0 156.9 3.3 349.9 6.9

Interest income 22.6 0.5 7.4 0.1 5.9 0.1Interest expense (38.8) (0.9) (44.3) (0.9) (44.5) (0.8)

Other income (loss) 0.9 — (8.6) (0.2) 10.2 0.2

Income before incometaxes 366.6 8.6 111.4 2.3 321.5 6.4

Income tax provision 129.8 3.0 38.0 0.8 51.6 1.0

Income before cumulativeeffect of change inaccounting principle 236.8 5.6 73.4 1.5 269.9 5.4

Cumulative effect of changein accounting principle, netof $1.8 million tax benefitin 2005 — — — — (2.9) (0.1)

Net income $ 236.8 5.6% $ 73.4 1.5% $ 267.0 5.3%3

Net income per share

Basic:




A 24 Appendix A Financial Statement Information

R A D I O S H A C K

Income before cumulativeeffect of change in

accounting principle $ 1.76 $ 0.54 $ 1.82Cumulative effect of changein accounting principle,net of taxes — — (0.02)

Basic income per share $ 1.76 $ 0.54 $ 1.80

Assuming dilution:Income before cumulative

effect of change inaccounting principle $ 1.74 $ 0.54 $ 1.81

Cumulative effect of changein accounting principle,net of taxes — — (0.02)

Diluted income per share $ 1.74 $ 0.54 $ 1.79

Shares used in computingincome per share:

Basic 134.6 136.2 148.1

Diluted 135.9 136.2 148.8




pp

R A D I O S H A C K

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY AND COMPREHENSIVE INCOMERadioShack Corporation and Subsidiaries

Shares at December 31, Dollars at December 31,

(In millions) 2007 2006 2005 2007 2006 2005Common stock

Beginning and end of year 191.0 191.0 191.0 $ 191.0 $ 191.0 $ 191.0

Treasury stock

Beginning of year (55.2) (56.0) (32.8) $(1,409.1) $ (1,431.6) $ (859.4)Purchase of treasury stock (8.7) — (25.3) (208.5) — (625.8)Issuance of common stock 0.5 0.6 1.2 12.8 18.6 31.8

Exercise of stock options and grant ofstock awards 3.5 0.2 0.9 88.3 3.9 21.8

End of year (59.9) (55.2) (56.0) $(1,516.5) $(1,409.1) $(1,431.6)

Additional paid-in capital

Beginning of year $ 92.6 $ 87.7 $ 82.7Issuance of common stock 6.2 (5.7) 3.5Excercise of stock options and grant of

stock awards (8.4) (1.7) (5.0)Stock option compensation 10.7 12.0 —Net stock-based compensation income

tax benefits 7.3 0.3 6.5End of year $ 108.4 $ 92.6 $ 87.7

Retained earningsBeginning of year $ 1,780.9 $ 1,741.4 $1,508.1

Net income 236.8 73.4 267.0Implementation of FIN 48 7.2 — —Common stock cash dividends declared (32.8) (33.9) (33.7)

End of year $ 1,992.1 $ 1,780.9 $1,741.4

Accumulated othercomprehensive (loss) income

Beginning of year $ (1.6) $ 0.3 $ (0.3)Pension adjustments, net of tax 0.4 (1.0) —Other comprehensive (loss) income (4.1) (0.9) 0.6

End of year $ (5.3) $ (1.6) $ 0.3

Total stockholders’ equity $ 769.7 $ 653.8 $ 588.8

Comprehensive income

Net income $ 236.8 $ 73.4 $ 267.0Other comprehensive (loss) income, netof tax:Foreign currency translation

adjustments (4.0) 0.3 (0.4)Amortization of gain on cash flow

hedge (0.1) (0.1) (0.1)Unrealized (loss) gain on securities — (1.1) 1.1

Other comprehensive (loss) income (4.1) (0.9) 0.6

Comprehensive income $ 232.7 $ 72.5 $ 267.6




R A D I O S H A C K

CONSOLIDATED STATEMENTS OF CASH FLOWS

RadioShack Corporation and Subsidiaries

Year Ended December 31,

(In millions) 2007 2006 2005

Cash flows from operating activities:

Net income $ 236.8 $ 73.4 $ 267.0Adjustments to reconcile net income to net cash

provided by operating activities:Depreciation and amortization 112.7 128.2 123.8Cumulative effect of change in accounting

principle — — 4.7Impairment of long-lived assets and other charges 2.7 44.3 —

Stock option compensation 10.7 12.0 —Reversal of unrecognized tax benefits (11.9) — —Deferred income taxes 16.5 (32.7) (74.0)Other non-cash items (9.0) 5.1 (2.9)Provision for credit losses and bad debts 0.4 0.4 0.1

Changes in operating assets and liabilities:Accounts and notes receivable (0.7) 61.8 (68.2)Inventories 46.8 212.8 38.8Other current assets 5.3 2.5 28.5Accounts payable, accrued expenses, income

taxes payable and other (31.3) (193.0) 45.1

Net cash provided by operating activities 379.0 314.8 362.9

Cash flows from investing activities:Additions to property, plant and equipment (45.3) (91.0) (170.7)Proceeds from sale of property, plant and

equipment 1.5 11.1 226.0Other investing activities 1.8 0.6 (16.0)

Net cash (used in) provided by investing activities (42.0) (79.3) 39.3

Cash flows from financing activities:

Purchases of treasury stock (208.5) — (625.8)Sale of treasury stock to employee benefit plans — 10.5 30.1Proceeds from exercise of stock options 81.3 1.7 17.4Payments of dividends (32.8) (33.9) (33.7)Changes in short-term borrowings and outsanding

checks in excess of cash balances, net 10.7 42.2 (4.0)Reductions of long-term borrowings (150.0) (8.0) (0.1)

Net cash (used in) provided by financing activities (299.3) 12.5 (616.1)

Net increase (decrease) in cash and cashequivalents 37.7 248.0 (213.9)

Cash and cash equivalents, beginning of period 472.0 224.0 437.9Cash and cash equivalents, end of period $ 509.7 $ 472.0 $ 224.0

Supplemental cash flow information:Interest paid $ 42.6 $ 44.0 $ 43.4Income taxes paid 112.2 52.9 158.5

Documents

Wil36679 Appa a1 a26 Fin Info Stat